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Complete the following extract from an invoice: Total (excluding VAT) € 1500.00 Trade Discount 35% Subtotal VAT 23% Total (including VAT) - Junior Cycle Business Studies - Question 16 - 2015

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Question 16

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Complete the following extract from an invoice: Total (excluding VAT) € 1500.00 Trade Discount 35% Subtotal VAT 23% Total (including VAT)

Worked Solution & Example Answer:Complete the following extract from an invoice: Total (excluding VAT) € 1500.00 Trade Discount 35% Subtotal VAT 23% Total (including VAT) - Junior Cycle Business Studies - Question 16 - 2015

Step 1

Trade Discount 35%

96%

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Answer

To calculate the trade discount, use the formula:

ext{Trade Discount} = ext{Total (excluding VAT)} imes rac{ ext{Discount Rate}}{100}

Substituting the values:

ext{Trade Discount} = 1500.00 imes rac{35}{100} = 525.00

Step 2

Subtotal

99%

104 rated

Answer

The subtotal is found by subtracting the trade discount from the total excluding VAT:

extSubtotal=extTotal(excludingVAT)−extTradeDiscount ext{Subtotal} = ext{Total (excluding VAT)} - ext{Trade Discount}

Substituting the values:

extSubtotal=1500.00−525.00=975.00 ext{Subtotal} = 1500.00 - 525.00 = 975.00

Step 3

VAT 23%

96%

101 rated

Answer

To calculate VAT, use the following formula:

ext{VAT} = ext{Subtotal} imes rac{ ext{VAT Rate}}{100}

Substituting the values:

ext{VAT} = 975.00 imes rac{23}{100} = 224.25

Step 4

Total (including VAT)

98%

120 rated

Answer

The total including VAT is calculated by adding the VAT to the subtotal:

extTotal(includingVAT)=extSubtotal+extVAT ext{Total (including VAT)} = ext{Subtotal} + ext{VAT}

Substituting the values:

extTotal(includingVAT)=975.00+224.25=1199.25 ext{Total (including VAT)} = 975.00 + 224.25 = 1199.25

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